Zinc futures traded around $3,190 per tonne, remaining close to their highest level in two weeks, as investors assessed the latest supply developments. Inventories at the Shanghai Futures Exchange dropped 2.3% over the past week, signaling short-term supply tightness. The market also continues to find support from supply constraints, including low stockpiles and disruptions caused by mine closures and operational delays.
However, price gains remain capped due to concerns over the global economic fallout from the Middle East conflict, which could weigh on industrial demand. Expectations of a small surplus this year also temper bullish sentiment, even as long-term supply growth may slow. Additionally, the restart of Boliden’s Tara mine and the production ramp-up at Ivanhoe Mines’ Kipushi project point to more supply.
